These are the top six fastest growing economies in Africa, according to PricewaterhouseCoopers.
In its newly released report, ‘Nigeria Economic Outlook - Top 10 themes for 2019,’ the professional services firm uses its analysis as well as data from the World Bank.
The report ranks the countries based on the percentage growth in GDP and ‘the opportunities for business growth, particularly when considering an expansion into new regions.’
Despite topping the list of the seven biggest economies in Africa right now , Nigeria is not one of the fastest growing economies.
Here are the top five fastest growing economies on the continent with their GDP growth rate, African and World ranking.
1. Ethiopia
GDP growth rate – 10.3%
Africa Rank – 7th
World Rank – 67th
The economy of Ethiopia is a mixed and transition economy with a large public sector. The Ethiopian government is in the process of privatizing many of the state-owned businesses and moving toward a market economy.
2. Ghana
GDP growth rate – 8.1%
Africa Rank – 11th
World Rank – 86th
The economy of Ghana has a diverse and rich resource base, including the manufacturing and exportation of digital technology goods, automotive and ship construction and exportation, and the exportation of diverse and rich resources such as hydrocarbons and industrial minerals.
3. Côte d’Ivoire
GDP growth rate – 7.7%
Africa Rank – 13th
World Rank – 91st
The economy of Ivory Coast is stable and currently growing, in the aftermath of political instability in recent decades. The Ivory Coast is largely market-based and depends heavily on the agricultural sector. Almost 70% of the Ivorian people are engaged in some form of agricultural activity.
4. Tanzania
GDP growth rate – 7.1%
Africa Rank – 10th
World Rank – 80th
The United Republic of Tanzania is the second largest economy in the East African Community and the twelfth largest in Africa. The country is largely dependent on agriculture for employment, accounting for about half of the employed workforce. An estimated 34 percent of Tanzanians currently live in poverty.
5. Senegal
GDP growth rate – 7.2%
Africa Rank – 21st
World Rank – 117th
Predominantly rural, and with limited natural resources, the Economy of Senegal gains most of its foreign exchange from fish, phosphates, groundnuts, tourism, and services. The agricultural sector of Senegal is highly vulnerable to variations in rainfall and changes in world commodity prices.
6. Djibouti
GDP growth rate – 7.0%
Africa Rank – 47th
World Rank – 174th
The economy of Djibouti is derived in large part from its strategic location on the Red Sea. Djibouti is mostly barren, with little development in the agricultural and industrial sectors. The country has a harsh climate, a largely unskilled labour force, and limited natural resources.
African economy for 2019
Earlier this year, the president of the African Development Bank, Akinwumi Adesina, predicted an improved economic growth in its 2019 African Economic Outlook report.
He said, ” The state of the continent is good. Africa’s general economic performance continues to improve.”
However, he noted that “it remains insufficient to address the structural challenges.” These issues include “risks from uncertainty in escalating global trade tensions, normalization of interest rates in advanced economies, and uncertainty in global commodity prices could dampen growth.”
The AfDB report also predicted that the general economy will increase by 4.0 per cent this year and 4.1 per cent in 2020.
